Delhi: Exit from costly pacts set to save discoms Rs 800cr yearly | Delhi News – Times of India

NEW DELHI: A recent order by the Central Electricity Regulatory Commission (CERC) and an earlier guideline by the Union Ministry of Power allowing discoms to exit power purchasing agreements (PPAs) with plants completing 25 years of commercial operations would pave the way for BSES discoms to save Rs 800 crore per annum and the benefit is likely to trickle down to the consumers.
The Delhi Electricity Regulatory Commission (DERC) had recently written to the ministry requesting de-allocation of Delhi’s share of ‘costly’ power (756 MW) from Dadri-I generating station of NTPC, for ‘optimisation of power purchase cost of Delhi, which will ultimately benefit the consumers of Delhi’.
Sources said that there are a total seven power stations that are supplying power at a comparatively expensive rate of more than Rs 6 per unit to BSES discoms. Of these, five stations, including Dadri-I, have completed 25 years and two more power stations will complete 25 years by August 2021 and April 2022. These seven power plants supply around 830 MW power to the discoms and sources said that BSES discoms have initiated the process with the DERC for exiting the remaining power plants in this category.
The discoms plan to replace this power with substantially cheaper ‘green power’ available at around Rs 2.5 per unit, which will lead to savings of around Rs 800 crore per annum, sources said. At present, the share of renewable energy is around 10% of long arrangements of BSES, which it plans to increase. The savings would help in recovering past revenue gaps for discoms, which have reached Rs. 51,646 crore as of March 31, 2020.
“This substantial difference in the prices of power will help in neutralising cost increases by absorbing the impact of inflation and other factors, including prices of coal, gas etc. In fact, these will ease the pressure on future tariff hikes,” an official said.


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